Afternoon all,
Markets are digesting the impacts of the first interest rates hike in three years - with likely more to come in the year ahead - but one thing is clear: this is not good news for mortgages. Homeowners are set for a “painful rise” in payments, with 2.3m households set to come off fixed rate deals by the end of next year.
Meanwhile, David Buik tells City AM that the Square Mile is in need of more fun. The City grandee tells Ali Lyon what’s changed since his first day in September 1962.
PLUS: City AM Editor-in-Chief Christian May gives his take on this year’s controversial John Lewis Christmas advert, and what it tells us about the current state of the iconic retailer.
We’ll be back in your inboxes at 8am tomorrow. In the meantime, have a great Thursday evening!
Matt
Mortgage holders brace for ‘painful rise’ after interest rate hike
The Bank’s Monetary Policy Committee raised interest rates to four per cent in a bid to stop inflation spiralling out of control amid the ongoing conflict in the Middle East.
But the decision will cause a further squeeze on home owners, who are already struggling against rising bills, as higher borrowing drives up mortgage costs. Around 2.3m households are due to come off fixed rate deals by the end of 2027, and could face higher bills when it comes to remortgaging.
David Buik: The City needs a bit more fun
It is 12:30 on a mild Tuesday afternoon, and as he takes to his blue leather stool and peruses his paper menu, David Buik is exactly where he is meant to be.
The City grandee can’t recall the exact number of times he’s frequented Mansion House’s Sweetings restaurant, but the historic Victorian-era eatery – best known for its inviting, anachronistic menu and equally inviting, anachronistic interiors – is a lunch destination of which the financial veteran of 64 years heartily approves.
No one alive has worked in the City longer than David Buik. He tells Ali Lyon what’s changed since his first day in September 1962, and what, mercifully, has remained the same.
Microsoft swerves multibillion-dollar Nscale data centre expansion
The US tech giant decided not to take up an option to more than double the computing capacity it rents from the Nvidia-backed company at a site in Texas.
However, Nscale said the decision was made several months ago, before its September stock market filing, and stressed that its existing contracts with Microsoft remained unaffected.
Week in Business: John Lewis Christmas Ad is a Cold, Dark Mess
For more than a decade, the John Lewis Christmas advert has been viewed as the moment the festive season truly begins. But this year's ad revealed a creative weakness at the heart of the embattled retailer.
City AM Editor-in-Chief Christian May discusses how the iconic department store got it so wrong...
From our partners
Discover the best of the Square Mile with OneCity: hidden spots, iconic experiences, breathtaking views and historic pubs.
Is Bali dead? I checked into Canggu’s oldest and newest luxury hotels to find out
Home to matcha bars, padel courts and beach clubs, Canggu is the poster child for Bali’s digital nomad transformation, but overtourism has seen some ward visitors away from the area. Anna Moloney checked into Hotel Tugu, the first hotel opened in Canggu, and The Regent, the coastline’s new, five-star luxury resort, to see how the area is still changing.
Trump is wounded but not finished – that’s a problem for Burnham
President Trump was never going to retire quietly, nor accept the blame for the Republicans’ midterm losses. As Democrats swept both chambers of Congress, his defence was that his name was not on the ballot. Candidates who spent months fighting uphill campaigns against historically high petrol prices, in a nation where nearly nine in 10 drive to work, will see it very differently.
In the wake of Donald Trump’s midterms misery, Andy Burnham should be careful not to mistake a lame duck for a tame one, writes Michael Martin.
Infantino facing surprise Fifa election challenge from Japanese FA chief
Kozo Tashima, honorary president of the Japan Football Association and a member of the Fifa Council for more than a decade, is the first rival candidate to have the backing of his FA.
Fifa election hopefuls require endorsement from a minimum of five FAs and have until 17 November to declare their candidacy for the vote in March next year.
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